US Sen. Charles Schumer raps approval of Fortis-CH Energy deal

KINGSTON, N.Y. -- U.S. Sen. Charles Schumer on Friday said the state Public Service Commission's approval of Fortis Inc. buying CH Energy Group lacked assurances that Hudson Valley customers will be protected.

The commission approved the $1.5 billion sale of Central Hudson Gas and Electric Corp.'s parent company in a 4-0 vote on Thursday.

"They (commissioners) did a few things but not enough, and I'm not happy with it," Schumer, D-N.Y., said before a Hudson Valley Economic Development Corp. meeting at the Seven21 Media Center in Kingston.

"We have to see if there can still be an evidentiary hearing," he said.

Evidentiary hearings would include company officials being questions. The Fortis-CH deal was subject only to public hearings, and company officials did not attend.

The four public hearings about the deal were presided over by two state administrative law judges and drew no comments of support for the buyout. The judges then issued a recommendation that the Public Service Commission reject the deal.

Those judges, however, later reversed course and recommended the deal be approved, citing growing support in recent weeks from, among others, the Hudson Valley Development Corp.

The corporation has CH Energy board members among its makeup.

Schumer on Friday said his office was preparing a formal response to the Public Service Commission's decision.

"It's complicated, and we're going through the whole thing," he said. "There are so many aspects to it. Some are good, some are bad."

Among problems that still have not been resolved, Schumer said, is Canada-based Fortis providing only $5 million for assistance to struggling customers and only $49.25 million in community benefit funding instead of the $80 million initially sought by the commission's staff.

He also cited a lack of detailed plans for "storm-hardening measures" and specific commitments to use renewable energy or assist with local efforts to promote alternative energy.

Schumer acknowledged the irony of appearing on Friday with Lant -- who the senator lauded for Central Hudson's support of three-dimensional printing - just five weeks after saying the Fortis proposal needed a more thorough review.

"He knows my views on this," Schumer said. "There are many people who I would disagree with politically or otherwise who give good money to charitable causes, and I praise them for that."

Lant declined to discuss Schumer's position on the buyout.

"At this point, I don't think it makes any sense to comment further on this," he said. "The case has been decided."

Lant could receive an $8.74 million "termination package" and $2.5 million in stock holdings under the Fortis takeover, which is to be completed by Aug. 20.